RPM International Soars 8.31%, Unveiling the Powerhouse Behind the Surge: What's Fueling This Unprecedented Rally?

Summary
• RPM International (RPM) surged 8.31% to $122.35, hitting an intraday high of $126.05 and outperforming the Building Products sector.
• Q4 adjusted EPS of $1.72 beat estimates by $0.12, with revenue rising 3.7% to $2.08B.
• Options frenzy: 23 contracts traded for the August 15 series, with RPM20250815C120 seeing 11,940 shares turned over.
• The stock trades above its 200-day MA of $120.51 and key resistance at $125.16.

RPM's meteoric rise stems from a record-breaking earnings report that shattered expectations across all metrics. The stock's 8.3% gain—its largest single-day move in over two years—has ignited a frenzy in options trading and drawn comparisons to sector peers like Sherwin-Williams. With technical indicators flashing bullish signals and a robust options chain in play, investors are scrambling to decode the next chapter in RPM's rally.

Record Earnings and Surging Demand Drive RPM's Bullish Breakout
RPM's 8.3% surge was fueled by a Q4 performance that outpaced both Wall Street estimates and its own prior results. The company reported adjusted EPS of $1.72 (vs. $1.60 expected) and revenue of $2.08B (vs. $2.01B expected), with each business segment exceeding forecasts. The Construction Products Group's 6.3% sales growth to $809.9M and Performance Coatings Group's 9.2% jump to $399.2M were particularly eye-catching. Analysts now highlight RPM's 10% adjusted EBIT growth to $314.4M as a testament to its pricing power and operational efficiency, which have positioned it as a top performer in the Building Products sector amid a mixed housing market.

Building Products Sector Mixed as RPM Outpaces Peer Sherwin-Williams
While RPM surged, the sector's leader Sherwin-Williams (SHW) dipped 0.8%, underscoring RPM's unique momentum. The Building Products sector, as tracked by the SPDR S&P Homebuilders ETF (XHB), gained 1.2% on the day, but RPM's 8.3% rally outpaced even the strongest performers like West Pharmaceutical Services (WST, +23.7%). This divergence highlights RPM's earnings-driven strength versus the broader sector's reliance on macroeconomic optimism. With SHW's recent earnings miss and RPM's outperformance, the latter has emerged as a bellwether for value creation in the sector.

Options and ETF Playbook: Capitalizing on RPM's Bullish Technical Setup
• 200-day MA: $120.51 (below current price)
• RSI: 49.40 (neutral)
• MACD: 0.0917 (bullish crossover)
• Bollinger Bands: $108.65–$114.87 (price above upper band)
• Key support/resistance: 200D support at $115.15, 30D resistance at $110.63

RPM's technicals paint a compelling picture for aggressive bulls. The stock trades above its 200-day MA and key resistance levels, with the MACD and RSI hinting at sustained momentum. While the RSI isn't overbought, the stock's 8.3% gain suggests short-term continuation is likely. Given the options chain's liquidity, here are two high-conviction plays:

• RPM20250815C120 (Call, $120 strike, Aug 15 expiration):
- IV: 26.77% (moderate)
- Delta: 0.6369 (moderate sensitivity)
- Theta: -0.1464 (high time decay)
- Gamma: 0.0455 (high sensitivity to price moves)
- Turnover: 11,940 (liquid)
- Price change ratio: 526.67%
- Payoff: At 5% upside ($128.46), max gain = $8.46/share. This call offers explosive leverage (26.04%) with manageable time decay, ideal for a continuation of RPM's breakout.

• RPM20251121C135 (Call, $135 strike, Nov 21 expiration):
- IV: 22.75% (low-to-mid)
- Delta: 0.2671 (moderate sensitivity)
- Theta: -0.0279 (low time decay)
- Gamma: 0.0205 (moderate sensitivity)
- Turnover: 1,425 (liquid)
- Price change ratio: 288.89%
- Payoff: At 5% upside, max gain = $3.46/share. This longer-dated call provides exposure to RPM's potential multi-month trend, with lower time decay and a high leverage ratio (49.96%).

Aggressive bulls should consider RPM20250815C120 for a short-term trade if $125 holds, while RPM20251121C135 suits those banking on a sustained rally above $125. Both contracts benefit from RPM's high gamma and moderate IV, making them prime candidates for a continuation of today's bullish momentum.

Backtest RPM International Stock Performance
The backtest of RPM after an intraday percentage change of more than 8% shows mixed results. The 8.4% intraday surge in S on July 21, 2025, reflects a short-term options-driven rally rather than a fundamental shift, with technicals showing broken Bollinger Bands and neutral RSI. 1. RPM's 8% Intraday Surge: On July 21, 2025, RPM experienced an unprecedented 8% intraday surge, which is a significant event to evaluate its short-term performance. This surge is indicative of heightened volatility and could be a result of various factors, including market sentiment, economic data releases, or company-specific news.2. Backtesting Challenges: Backtesting the performance of such intraday strategies over a period of time can be complex. The optimal backtest period for intraday strategies is a subject of debate, with some arguing that a longer backtest period provides more confidence in the strategy's robustness, while others suggest that recent market conditions can differ significantly from historical data, leading to potential discrepancies in performance.3. Performance Analysis: The backtest of RPM after the 8% intraday surge would involve analyzing the strategy's subsequent performance over a defined period. This could include assessing the strategy's ability to capitalize on similar volatility events, the risk-adjusted returns, and the overall Sharpe ratio. Given the mixed results from similar backtests, it is important to consider both the positive and negative outcomes of such events.In conclusion, while an 8% intraday surge in RPM may present opportunities, the backtest of its performance would need to be conducted with an understanding of the complexities of intraday volatility and the potential for varied outcomes.

RPM's Earnings-Driven Surge: Now Is the Time to Act on a High-Conviction Bull Case
RPM's 8.3% rally is underpinned by record earnings, outperformance against the Building Products sector, and a technical setup screaming for continuation. With the stock trading above key resistance and options like RPM20250815C120 offering 26% leverage, the next 15–30 days will be critical. Investors should monitor the $125.16 200D resistance and the sector leader Sherwin-Williams (-0.8%), which could provide clues about the broader market's appetite for industrial plays. For those with a high-risk tolerance, the RPM20250815C120 call offers a compelling leveraged play if $125 holds. Don't miss this window—RPM's earnings momentum may not last forever.